Hong Kong shares seen steady ahead of policy address

Reuters Staff

3 Min Read

HONG KONG, Jan 16 (Reuters) - Hong Kong shares may start slightly higher on Wednesday ahead of an annual policy address by the territory’s chief executive later in the day, with the market’s focus on the local property sector.

China is also expected to release December direct foreign investment data. China’s Commerce Minister said in comments late Tuesday that the world’s second-largest economy will attract a similar amount of foreign direct investment this year compared to 2012.

On Tuesday, the Hang Seng Index slipped 0.1 percent to 23,381.5, while the China Enterprises Index of the top Chinese listings in Hong Kong was flat.

Elsewhere in Asia, Japan’s Nikkei was down 1.2 percent, while South Korea’s KOSPI was up 0.5 percent at 0100 GMT.

FACTORS TO WATCH:

* China will offer up to 300,000 yuan ($48,200) as a cash reward to people who report on others who violate food safety laws, state media said on Tuesday, as the government tries again to crack down on a persistent problem.

* BOC Aviation, the aircraft leasing arm of Bank of China Ltd , has placed its largest ever order to buy 50 A320 family jets from Airbus at a list price of $5 billion.

* Chrysler Group LLC said on Tuesday it has agreed to make Jeeps in China with partner Guangzhou Automobile Group Co Ltd in a move to catch up with rivals in the world’s biggest car market.

* Wal-Mart Stores Inc, a client of supply chain manager Li & Fung Ltd, will buy an additional $50 billion in U.S.-made products over the next decade in areas like sporting goods and high-end appliances in what the world’s largest retailer called a bid to help boost the U.S. economy.

* Global supply chain manager Li & Fung Ltd said on Tuesday it had acquired Lornamead Acquisitions Ltd for about $190 million, as it strengthens its business globally in health, beauty and cosmetics.

* Hong Kong Exchanges and Clearing said on Tuesday it will introduce Asian time-zone price discovery and clearing on the London Metal Exchange (LME), in a move that could hold off competition from its Shanghai rival.

* Property developer Fantasia Holdings Group Co Ltd said it would issue $250 million 10.75 percent senior notes due 2020, raising proceeds to refinance its indebtedness and to fund property development projects.

* Hengdeli Holdings Ltd, the largest retailer of Swiss watches in the Greater China in terms of turnover and number of retail stores, said it planned to issue senior notes, raising capital to redeem its outstanding 2015 convertible bonds and to refinance its other debt obligations.

* Property developer Chinese Estates Holdings Ltd said it expected to book a HK$1.31 billion gain in 2012 due to fair value changes of equity and debt securities.(Reporting by Clement Tan and Donny Kwok; Editing by Richard Pullin)